Gold Hits $2K
Welcome to Mining Stock Daily. Standing in for Trevor Hall, I’m Paul Harris.
Today is Monday, April 17th
On Thursday last week, gold was slammed from US$1,979 per ounce to as low as $1,961 when the stock market opened for the holiday-shortened week. The price raid occurred in complete absence of any news that might have triggered the cliff-dive sell-off. But the yellow metal spent the rest of the day clawing back most of the price management effort from the gold price management team, closing out the week at $1,972. For the week gold rose nearly $30.
Silver was pushed down nearly 45 cents per ounce on Thursday, taking silver on a ride from $26.10 to as low as $25.46. As with gold, silver rallied to reclaim a large portion of the price hit, settling at $25.85 for the week. The Mining Stock Journal commented that the charts for gold and silver look exceedingly bullish. It added that it would not be surprised to see gold move over $2,000 or for silver to launch through $26 and move toward $27.
The mining stocks rose on Thursday and for the week last week. The HUI and GDX charts are in breakout mode. The Mining Stock Journal noted that interest in the sector from a wide investor audience has been muted. It added that, when the mainstream investors discover the precious metals sector, the moves higher will be explosive.
We will get to the news from the miners and explorers in a moment, but first a word about today’s sponsor.
This episode of Mining Stock Daily is brought to you by… Western copper & Gold
Western Copper and Gold is focused on developing the world-class Casino project in Canada's Yukon Territory. The Casino project consists of an impressive 11 billion pounds of copper and 21 million ounces of gold in an overall resource. Western Copper and Gold trades on the TSX and the NYSE American with WRN. Be sure to follow the company via their website, www.westerncopperandgold.com.
And here’s what you need to know this morning….
Solaris Resources reported an updated mineral resource estimate for the Warintza Central deposit at its Warintza copper-gold project in southeastern Ecuador, which now features and in-pit indicated resource of 579 million tonnes grading 0.59% copper equivalent and inferred resources of 887Mt grading 0.47% CuEq. Solaris said the resource includes a starter pit comprised of 180Mt of indicated resources grading 0.82% CuEq and 107Mt of inferred resources grading 0.73% CuEq at a 0.6% cut-off grade, with a low strip ratio with consistent, clean sulphide mineralogy free of deleterious elements. The Warintza Central pit shell includes an overlapping portion of the Warintza East deposit discovered last year and where it sees major growth potential. Solaris Resources trades on the TSX under SLS and on the OTCQB under SLSSF. News release
Staying in Ecuador, Luminex Resources signed a binding agreement with Chile’s state copper company Codelco to acquire its 8,087-hectare package of Chalapo concessions in Loja, Ecuador for US$60,000 a 1% NSR,of which a 0.5% NSR can be purchased for $5 million before 2030. Chalapo is an early stage, undrilled high sulphidation epithermal gold-silver prospect. Rock chip sampling by Codelco identified a zone of anomalous gold with pathfinder elements typical of a high sulphidation gold system, including silver, arsenic, mercury and copper. Luminex Resources trades on the TSXV under LR and on the OTCQX under LUMIF. News release
enCore Energy said that a refurbishment of its Rosita In-Situ Recovery (ISR) uranium processing plant in Texas is 90% complete with an expected completion date in May. The plant modernization and refurbishment is essential to the company’s goal of becoming the next American producer of uranium. Once the refurbishment is complete, enCore will commence commissioning, expected to take about 30 days following which it will be ready to start receiving loaded resin. Wellfield installation will begin immediately following the submittal of the Production Area Authorization (PAA) data package to the Texas Commission on Environmental Quality. encore said all activities are on track and on budget for a projected 2023 production start. The company said it is also commencing a cost benefit analysis to consider options for expansion of the current 800,000 pounds U3O8 production capacity at Rosita and its potential to be increased to 2 million pounds U3O8 through the installation of a larger second dryer. enCore Energy trades on the TSXV under EU and on the OTCQB under ENCUF. News release
Condor Resources signed an extension with Chakana Copper relating to the latter’s 2017 option to acquire the Soledad project in Peru. Chakana will pay US$200,000 for a two-month extension until June 23rd and will have two options to complete the remaining payment amount of $4.225 million. Chakana can pay Condor $2.8 million in cash and issue 9.5 million shares or make the payment in cash over four installments over the next three years, and issue C$1 million in Chakana shares. Condor Resources trades on the TSXV under CN. Chakana Copper trades on the TSXV under PERU and on the OTCQB under CHKKF. News release
Nevada King Gold has increased its C$6.8 million non-brokered private placement to $11.3 million through the issuance of 25 million shares priced at 45 cents with CEO Collin Kettell increasing his subscription to $4.5 million. The company said participation by management and insiders will make up roughly half of the financing. Upon closing, Nevada King will have working capital in excess of $23-million as it plans to exploration its land holdings along the Battle Mountain Trend in Nevada with active exploration and drilling programs underway on multiple targets. Its projects include the Atlanta Mine which hosts an historical pit-constrained measured and indicated resource of 460,000 ounces of gold. Nevada King Gold trades on the TSXV under NKG and on the OTCQX under NKGFF. News release
That concludes today’s morning briefing.
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